PIP changes might not lower insurance rates!

PIP changes might not lower insurance rates!

Looks like any decrease in insurance rates, as promised by Governor Rick Scott, as a result of the changes in the PIP laws, will not be seen until next year, and probably will not be in the form of reduced rates as most would have hoped.

According to the Miami Herald, recent reports suggest that decreases will not come in October as lawmakers originally suggested, and the anticipated reductions may not come in the form of reduced insurance rates, but will likely only offset increases in rates. Not quite the break that some had hoped for!

The report conducted by Pinnacle Actuarial Resources, shows the changes could reduce the amount insurance companies pay out in PIP claims between 14 and 23 percent. However, the bottom line for drivers may not change that much. In fact, insurance regulation spokesman Jack McDermott cautioned, “This projected savings may actually mitigate premium increase(s), not reduce premiums.”

Fortunately, as part of the law, insurers must either reduce PIP claims by 10 percent or explain why they cannot by Oct. 1.

Senator Joe Negron, an advocate who led the reform to the no-fault auto insurance laws, assures that, “We worked closely with all the stakeholders to look at the cost-drivers, and I expect PIP claims to be significantly reduced at a minimum of 10 percent immediately and 25 percent once it’s fully implemented.” He also shared, “I’m going to be watching that like a hawk over the next year or two, and we’re going to hold the insurance companies’ feet to the fire to make sure there are reductions.”
I guess we’ll have to wait and see!

If you, a family member, or a friend is unsure about your insurance coverage, or your legal rights as a result of the new PIP changes, ALWAYS speak with an experienced and qualified attorney! The personal injury attorneys at Perenich, Caulfield, Avril & Noyes have been caring for clients in the Tampa Bay area for over 55 years. Click here for a free case consultation or contact us today!